capital by 22 basis points, or 10 percent of total funding costs. This effect is stronger in banks that were measured as …

for the majority of this increase. Individual banks' contributions to aggregate vulnerability predict other firm …

monetary policy's risk-return trade-off, including 1) pricing of risk, 2) leverage, 3) maturity and liquidity mismatch, and 4 …

for the firms that were heavily relying on FXD hedging. I offer a mechanism in which imbalances in hedging demand, banks …

credit is preferable to substitutes such as the bounced-check “protection” sold by credit unions and banks or loans from …

This paper investigates the incentives for banks to bias their internally generated risk estimates. We are able to … by low-capital banks to improve regulatory ratios. At the portfolio level, the difference in borrower probability of … credits. In addition, we find that low-capital banks' risk estimates have less explanatory power than those of high …